Note to Editors: See press release below re: new SEC ruling. In response, Millionaire Corner has launched an adviser review service on its MillionaireCorner.com website to provide consumers with honest, third-party ratings of financial advisers.
- Ratings are obtained through ongoing monthly research. When participating in the research, investors are asked for the name of their investment adviser or an investment advisory representative (IAR) and asked several questions regarding their satisfaction with that adviser as well as their likelihood to recommend that adviser.
- Ratings are posted without any review or editing by the investment adviser or IAR.
- In the future, an investment adviser or IAR will be able to engage with Millionaire Corner to reach out to his or her customers to obtain ratings, but will not be able to review or influence the results. Results can then be posted on the adviser’s site as well. These advisers, designated Client-Centric Advisors by Millionaire Corner, will have the right to display a credentialing badge on their site.
- Ratings are based upon the key factors that investors consider when hiring or firing an investment adviser or IAR, based upon Spectrem Group’s 20+ years of wealth market research and experience.
Will New SEC Guidance Force Advisers to Listen to their Customers?
Chicago, April 16, 2014 – At the end of March, the SEC quietly published IM Guidance Update No. 2014-4. This memorandum will allow investors to review client opinions of investment advisers or investment advisory representatives (IARs) that are posted by a third party.
As consumers become increasingly familiar with independent, third-party review sites such as Open Table, the SEC found that consumers sought a similar tool for investment advisers. Compliance rules from the 1990s initially seemed to prevent consumers’ ability to provide testimonials and ratings for investment advisers and IARs. Specifically, testimonials were not allowed in investment advisory advertisements because they could be construed as a fraudulent, deceptive or manipulative act or practice.
IM Guidance Update No. 2014-4 specifically addresses this issue and allows independent third-party sites to publish testimonials about an investment adviser or IAR. The third party must be independent of the adviser and the adviser can have no control over the information posted. Additionally, the independent social media site may include a mathematical average along with the public commentary.
Millionaire Corner (www.millionairecorner.com) is one of the first to accommodate consumers following the new SEC Guidance with its Best Financial Advisors service, a reviews platform for more than 1,000 advisers across the U.S.
“We are pleased that the SEC has realized the value that a service like this provides for investors,” states Catherine McBreen, President of Millionaire Corner. “Our research shows that advisers often believe they know what their customers want, but research with the customers shows otherwise. This will be an invaluable tool to bridge that gap and benefit both investors and advisers.”
For more information about Millionaire Corner’s Best Financial Advisors service and reviews process, or to set up an interview with Cathy McBreen, president of Millionaire Corner, contact Natalie Bisaro at email@example.com, 708-434-5006,
Millionaire Corner is a premier independent online resource for investors and about investors. Millionaire Corner delivers timely, relevant and practical information and tools to help fuel financial growth for Millionaire investors and aspiring millionaires. With its Best Financial Advisors service, investors are able to search and evaluate financial advisors based on actual customer reviews of satisfaction with the advisor.
About Spectrem Group
Spectrem Group (www.spectrem.com) is the leading research provider in the wealth management marketplace. Each month, Spectrem Group surveys more than 1500 investors with $100,000 to $25 million of net worth regarding their investment attitudes and behaviors.